Panoptic

Introduction

Panoptic, leveraging Uniswap V3 for perpetual options, benefited from our parameterization of its structural design. Using game theory and agent-based simulations, we optimized the protocol for market-making and trader engagement, ensuring robustness in a competitive environment. Read the paper here.

Scope

• Refine key design elements of Panoptic’s architecture.
• Develop and execute multi-stage simulations across diverse trading volume and liquidity scenarios.
• Model the incentives and interactions among Panoptic actors.
• Evaluate critical indicators such as pool utilization, collateral ratios, and premium dynamics.
• Deliver actionable insights for enhancing market-making efficiency and trader engagement.

Results and Findings

Our agent-based simulations and game theory analysis highlighted several key improvements in liquidity provider incentives and risk management practices. These findings reinforce Panoptic’s ability to deliver competitive payoffs and robust market performance within a dynamic trading environment.